Our Cooperative – Palawan Electric Cooperative

OUR COOPERATIVE

BACKGROUND

The Palawan Electric Cooperative, Inc. (PALECO) is a non-stock, non-profit electric cooperative organized and existing under and by virtue of the provisions of P.D. 269 as amended by P.D. 1645 on January 25, 1974; it was registered with the National Electrification Administration (NEA) and was granted a fifty-year (50) franchise to operate and supply electric power services to its member-consumers in its area coverage, namely the City/Municipalities of Puerto Princesa City, Narra, Aborlan, Quezon, Brooke’s Point, Balabac, Rizal, Roxas, Taytay, El Nido, Araceli, Dumaran, Cuyo, Magsaysay, Bataraza, San Vicente, Cagayancillo, Agutaya and Espanola, all in the Province of Palawan.

Table below shows the distance of PALECO main office to different municipal area coverage and the issuance date of its franchise

Municipalites/City Franchised Areas	Date Franchised Issued	Distance (Kilometers)	Distance (Nautical Miles)
Puerto Princesa City	August 8, 1979	2.5
Aborlan	August 8, 1979	62
Narra	August 8, 1979	93
Sofroño Española		170
Brooke's Point	December 8, 1982	195.2
Bataraza	August 7, 1996	227
Quezon	August 10, 1989	157
Rizal	August 7, 1996	207
Balabac Island	June 9, 1995		147
Roxas	July 11, 1991	145
San Vicente	August 7, 1996	166
Taytay	July 11, 1991	217
El Nido	June 9, 1995	267
Dumaran Island	Junuary 27, 2000	169	91
Araceli Island	June 9, 1995		108
Cuyo Island	December 8, 1982		156
Magsaysay Island	December 8, 1982		170
Cagayancillo Island	Juanuary 27, 2000		178

On August 01, 2006, PALECO opted to permanently register with the Cooperative Development Authority (CDA) under CDA Registration Number QC-1616-3012. Its By-Laws and Articles of Cooperation were ratified by the General Assembly on March 10, 2007 conforming to the provisions of the Cooperative Code of the Philippines otherwise known as RA 6938. The said By-Laws and Articles of Cooperation were unanimously confirmed by the member-consumers through district assemblies conducted by PALECO. PALECO was re-registered with the CDA on March 17, 2010 under CDA Registration No. CIN-0102040234, which is in compliance with the provisions of RA 9520 otherwise known as the Philippine Cooperative Code of 2008. In the Amended Articles of Cooperation, PALECO is to exist for a term of fifty (50) years from and after the date of registration with the CDA. Since its registration with CDA until present, PALECO has been issued with a Certificate of Good Standing by the CDA for being compliant with all the requirements under CDA rules and regulations.

Through this new set-up, PALECO has focused to distribute, promote and encourage the fullest use of electricity within its franchise area. Its vision is to be globally competitive and member-customer-owner-focused electric cooperative. To realize the said goal, PALECO formulated its mission which serves as the centerpiece of our existence, that is, “A member-consumer-owner focuced electric cooperative providing quality and reliable electric service consistent with mandated standards”.

OPERATIONAL MILESTONES

AWARDS & ACHIEVEMENTS

For the continued improvement of PALECO’s services to its member-consumers, it has created the Consumers Welfare Desk, wherein consumers’ complaint is being received from 7:00 in the morning to 7:00 in the evening; and the Action Agad Task Force wherein minor and emergency problems of consumers are being addressed at shortest possible time. It also provides 24-hour telephone and cellular phones to its Sub-Offices for the convenience of our member-customer-owners.

As to the improvement of its collection and billing system, it has now adopted an on-line collection it has now adopted an on-line collection system in its Main Office and some of its Sub-Offices. PALECO also purchased a gadget called Personal Digital Assistant (PDA) for its meter readers and adopt the Read and Bill System wherein the meter reading and the delivery of Statement of Account are being done simultaneously.

PALECO implemented the Relay Question Information Message (RQIM) System for the fastest delivery of relevant information to every employees, wherein all its offices were connected on-line to NEA and to the main office.

The Cooperative has also established an excellent relation to various Local Government Units and as a proof, the Provincial Government of Palawan had financed more than P50 million worth of electrification projects to various areas of Palawan under the direct supervision of Paleco. The City Government of Puerto Princesa had also electrified some of its barangays thru the joint effort with PALECO.

The Co-op has also linkages with TESDA and continuously provides free trainings on various field especially on electricians training.

PALECO thru its Board of Directors has donated various projects to its constituents such as the donation of street lightings, refrigerators and other electrical equipment necessary to maintain the Co-ops good relation to different government and non-government agencies.

PALECO BOARD CHAIRPERSONS

PALECO GENERAL MANAGERS

FINANCIAL PERFORMANCE

COMPARATIVE FINANCIAL REPORT

2021 & 2022

Particulars	2022	2021	Increase (Decrease)
Total Revenues	2,794,499,665	2,246,592,672	547,906,993
Purchased Power	2,428,778,248	1,905,669,163	523,109,085
Non-Power Costs including Depreciation	425,757,779	419,416,779	6,341,000
Depreciation Charges			-
Other Income	81,135,357	112,879,157	(31,743,800)
Finacing Cost	291,559	87,070	204,489
Net Income (Loss) for the year	10,353,400	29,553,998	(19,200,598)
Total Utility Plant (Net Book Value)	755,967,658	743,852,267	12,115,391
Receivables-Net	415,995,294	388,046,169	27,946,125
Prior Year Adjustment	(10,454,036)	-	(10,454,036)

ENERGY SALES
In kWh	351,408,372	314,042,107	37,377,264
In Pesos	2,794,499,665	2,246,592,672	547,906,993
SYSTEM LOSS	10.80%	9.48%

PAYMENT OF POWER
In Pesos	2,428,778,248	1,905,669,163	523,109,085
COLLECTION EFFECIENCY	90.16%	89.74%

WHERE OUR REVENUE COMES FROM:
Residential	1,377,218,066.56	1,223,700,210.00
Commercial and Industrial	1,072,544,374.69	776,241,336.00
Public buildings and facilities	284,303,047.19	212,627,556.00
Public streets and highways	32,584,675.43	34,023,570.00
Other income	108,984,858.14	112,879,157.00
	2,875,635,022.00	2,359,471,829.00	2,875,635,022.00

WHERE OUR REVENUE GOES:
National Power Corporation/ Independent Power Providers	2,557,030,827.47	1,905,669,163.00
Administrative & General Expenses	150,315,715.02	1,905,669,163.00
Distribution Expenses	104,449,641.58	176,868,161.10
Consumer Accounts Expenses	27,450,937.69	74,451,089.10
Depreciation Expenses	15,580,464.24	59,439,634.80
	2,854,827,586.00	2,325,173,012.00	2,854,827,586.00
10,353,400.00

WHERE OUR REVENUE COMES FROM:

Majority of our revenue comes from our sales to our residential, commercial and industrial consumers. It accounts for 86.36% of the total revenue.

WHERE OUR REVENUE GOES:

About 85.08% of our revenue accounts for the cost of power purchased from National Power Corporation, Palawan Power Generation Inc., DMCI Power Corporation and Delta P, Inc. Approximately 14.92% of our revenue is for nonpower cost.